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Private life insurers better claim payout ratio to 95% in FY18

Private life insurers better claim payout ratio to 95% in FY18

Finance
BENGALURU: The life insurance industry is honouring more claims, helped by technology and better fraud management. The claims payout ratio has improved significantly, with private industry paying 95.2% of all claims in 2017-18, compared to 93.7% in the previous year, and 88.3% in 2014-15. LIC has long been paying over 98% of its claims. That continues, though it slipped marginally in 2017-18. In fiscal 2018, 21 of 23 private life insurers paid more than 90% of claims, unlike in 2014-15, when only nine did so and the majority paid out only 50-70% of claims. Claims repudiation (those rejected) by private players is also down to just under 4%, from 4.6%. Fraud management, tech, regulation help cut rejections Among the reasons for this improvement, insurers say, is that they have adopted bette...
Mutual funds managing more equity assets than insurers for the first time: ICRA report

Mutual funds managing more equity assets than insurers for the first time: ICRA report

Finance
For the first time, mutual funds have managed more money in equities than insurers in the month of October 2018, according to the data released by National Securities Depository Limited (NSDL). As per the data, equity assets managed by insurance companies came in at Rs 9.22 lakh crore as against Rs 9.32 lakh crore by mutual funds. Data released by Association of Mutual Funds in India (AMFI) showed that assets under management (AUM) of the mutual fund industry grew at 8.08% month-on-month (MoM) and 5.45% year-on-year (YoY) basis to Rs 24.03 lakh crore in November 2018. Equity AUM (including equity linked savings scheme), balanced funds and ETFs run by mutual funds stood at Rs 10.44 lakh crore in November 2018, up by 3.74% (MoM basis) and 8.92% (YoY basis). As per ICRA report, the mutual fun...
Mandatory third party insurance for vehicles to benefit consumers, insurers: Experts

Mandatory third party insurance for vehicles to benefit consumers, insurers: Experts

Finance
NEW DELHI: Even as customers buying cars and two-wheelers post September 1 need to shell out more as premium with Irdai making long-term third party insurance mandatory, industry and experts feel it will ultimately benefit consumers besides the insurers. It addresses the issue of under-insurance and inculcate a sense of compliance among those who otherwise evade the law by not buying the third party motor insurance after the initial year of vehicle purchase, said an analyst. Following an order from the Supreme Court, the Insurance Regulatory and Development Authority of India (Irdai) has directed the insurance companies to offer three-year third party insurance cover for new cars and five-year such policy for new two-wheelers from September 1, 2018. The new guideline will contribute to hig...
Rs 15,167 crore unclaimed money of policyholders lying with insurers

Rs 15,167 crore unclaimed money of policyholders lying with insurers

Finance
As much as Rs 15,167 crore amount of policyholders is lying unclaimed with 23 life insurers, according to Irdai data. Insurance regulator Irdai has already asked insurers to take steps to identify the policyholders or beneficiaries and disburse the claims. Board level committee for policyholder protection of every insurer is entrusted with the responsibility of monitoring the timely payout of the all dues to policyholders. It also oversees the steps taken by the insurers to reduce unclaimed amounts as part of the standard procedures on customer service. Out of the total unclaimed amount of Rs 15,166.47 crore, as on March 31, 2018, insurance behemoth Life Insurance Corporation (LIC) is sitting on Rs 10,509 crore, while the 22 private sector insurers account for the remaining Rs 4,657.45 ...
Transfer unclaimed deposits to welfare fund by March 1: Irda to insurers

Transfer unclaimed deposits to welfare fund by March 1: Irda to insurers

Finance
Insurance regulator Irda has asked all insurers to transfer the deposits of policyholders that have been laying unclaimed for over 10 years to the welfare fund by March 1. "All insurers having unclaimed amounts of policyholders for a period of more than 10 years as on September 30, 2017 shall transfer the same to Senior Citizens' Welfare Fund (SCWF) on or before March 1, 2018," the Insurance Regulatory and Development Authority of India has said in a circular. The directive comes under the Department of Economic Affairs accounting procedure for transfer of funds to SCWF. Life, non-life and health insurance service providers will have to comply to the SCWF Rules, 2016 every year. "The insurers shall make transfers to the consolidated fund of India on or before the 1st March, eac...